When it comes to investing, going with the crowd will rarely if ever make you rich. If your objective is to buy low and sell high, then, in the words of Warren Buffett, you must be "greedy when others are fearful and fearful when others are greedy." This is the foundation of contrarian investing.
But there's a twist. To be a contrarian investor, you must first know what to be contrary to. And this is where the SEC's invaluable EDGAR database comes in. Every quarter, companies and large institutional investors are required to disclose their equity holdings. By patching these together, we can get a fuller picture of a particular stock's popularity.
What follows, in turn, is a look at the principal owners of PNC Financial's (NYSE: PNC ) outstanding common stock.
A broad overview
As you can see in the following chart, the majority of PNC's 529 million shares are held by institutional investors. Company insiders, including board members and corporate executives, own a further 0.32% of the outstanding common stock. And the public at large owns the remaining 17%.
Digging in a big further, the largest institutional stakeholders in PNC are Wellington Management Co., bond giant BlackRock, the asset management division of State Street, The Vanguard Group, and finally Barrow, Hanley, Mewhinney & Strauss.
The largest buyers have been are Wellington Management Co. and T. Rowe Price, which have recently acquired 6.8 million and 4.1 million shares of common stock, respectively. Meanwhile, the two largest sellers of late have been Capital Research and Management Co. and Investec Asset Management, which have disposed of 5 million and 2.1 million shares, respectively.
Turning to inside investors, the largest inside owner is James Rohr, PNC's outgoing chairman and chief executive officer. The second largest holder is incoming CEO William Demchak. And the third largest holder is Helen Pudlin, a former executive vice president and general counsel at the bank.
The Foolish bottom line
While insider and institutional ownership together represent only one metric, it's nevertheless an important one. Beyond hinting at the overall market's sentiment toward a stock, it also gives investors insight into the confidence of the people best positioned to predict a company's current state and future success.
Want to learn more about PNC?
The big banks may be rushing to renew their focus on traditional banking, but well-run regional banks like PNC Financial are already there. PNC saw its share of hardships during the financial meltdown, but its management team thinks the bank is now back on track and ready to deliver for investors. Does this mean it's time to buy PNC? To help you figure that out, one of The Motley Fool's top banking analysts has authored a brand-new premium research report, delving into everything investors need to know about PNC today. To claim your copy, simply click here now for instant access.